What is Accidental Death Benefit?
The Accidental Death Benefit is an optional feature or rider on life insurance policies, providing extra benefits if the insured dies due to an accident. Typically, this benefit is added to various types of life insurance, including Term Life Insurance, Whole Life Insurance, and Indexed Universal Life Insurance. This feature ensures that, in the event of accidental death, beneficiaries receive an additional sum on top of the standard death benefit specified in the policy.
An accidental death must meet certain criteria set by the insurance provider to qualify for this benefit. For example, deaths resulting from natural causes, illnesses, or high-risk activities like extreme sports (unless specifically included) may not qualify. This type of benefit can provide peace of mind, especially for individuals working in high-risk professions or those concerned about the financial impact of an unforeseen event.
By adding an Accidental Death Benefit, policyholders enhance their coverage, often at a relatively low additional cost. This feature is especially beneficial for families that may rely heavily on the insured’s income, providing added security and financial stability during a potentially challenging time.
